Report: Facebook Working On Potential Rival To YouTube

According to a report by the New York Post, Facebook Inc (NASDAQ: FB) is working on a potential service to compete against Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL)'s YouTube platform.

The New York Post suggested that Facebook is "searching for fresh ways to work with the music industry," and hopes to leverage its massive global network of 1.59 billion users to try and steal market share away from music fans that flock to YouTube's platform.

The publication added that YouTube's estimated $8.5 billion revenue base is "just too enticing" for the social media platform.

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Facebook did confirm on Sunday it was exploring a new product called Slideshow that includes music partners such as Warner Music Group.

"We are always testing ways to help people better share their stories with friends," a spokesperson for Facebook told the New York Post. "Slideshows are a new way for people to share photos and videos in a creative and succinct way. To date, we've been using Facebook-owned music to accompany these slideshows, we will now be testing the use of a limited amount of music from Warner Music Group as soundtrack options."

"Facebook is trying to figure out how to keep video as part of its experience," a source familiar with the talks also told the publication. "They're looking for a way to take photos, add licensed music and share it with friends."

Minutes after Monday's open, Facebook was down 1.22 percent at $118.35.